Real Estate Advisor - January 2014
Introducing Our New Name…
BERKSHIRE HATHAWAY HomeServices
Introducing Our New Name…
BERKSHIRE HATHAWAY HomeServices
On December 10th, our company adopted the new Berkshire Hathaway HomeServices brand. We are excited to begin this new chapter for our company and this conversion will bring many advantages for our agents and our clients. This year, we also celebrate 50 years of serving the needs of our clients in the Greater Metro Atlanta area. During that time, we have operated as Crest Realty, Merrill Lynch Realty, Prudential Atlanta Realty and Prudential Georgia Realty. Though the name has changed, our commitment to deliver exceptional real estate services has not. In the last five years, our company has been consistently ranked as the #1 real estate company with more homes sold than any other brokerage. Here is some information about Berkshire Hathaway.
- According to the Forbes Global 2000 list, Berkshire Hathaway is the 8th largest public company in the world. The company is led by Chairman and CEO, Warren Buffett who is often referred to as “the Oracle of Omaha” for his keen insight on business matters.
- Berkshire Hathaway owns and operates approximately 55 companies and employs approximately 300,000 people. Company holdings include major brands like GEICO, Fruit of the Loom, Dairy Queen, Benjamin Moore, Helzberg Diamonds, NetJets, Heinz, MidAmerican Energy and Shaw Industries which is located in Dalton, Georgia.
- Berkshire Hathaway has major stock positions in companies like Wells Fargo (8.7%), American Express (13.7%), IBM (6%) and Coca-Cola (8.9%).
- Berkshire Hathaway was named the No. 1 company in Barron’s annual ranking of the world’s 100 most respected companies.
Being part of such a large and successful organization gives us many advantages. Berkshire Hathaway HomeServices has the resources to bring a new level of quality and innovation to real estate. Look for a series of announcements in early 2014!
We look forward to leveraging the Power of Berkshire Hathaway to deliver even more advantages for our clients and customers. Contact us to learn more.
Greater Metro Atlanta Real Estate Update
We are providing this monthly real estate advisor report to keep you informed about the latest trends and issues in the real estate market. If you know someone else who might be interested in receiving this report or who may benefit from our expertise, please let us know. Better information helps our clients make better real estate decisions!
Here are the latest results posted for November 2013:
- Once again, BHHS Georgia Properties was Number 1 in both homes sold and buyers represented. Our company continues to lead the market year-to-date for 2013.
- For the Greater Metro Atlanta area, listed inventory was up 21.4% from the lowest point in February 2013. Inventory was up 7.7% compared to 2012 levels and down 34% from 2011. The limited availability of quality properties with reasonable value has turned some local areas into a seller’s market.
- The available “months of supply” was 5.1 months based upon closed sales (6 months is considered normal). This is up 18% from last month.
- Closings for Metro Atlanta in November were down 18.6% compared to last month and down 14.4% compared to the previous year.
Compared to November 2012, closings under $100,000 were down 53%. The exit of large investors has allowed the distribution of properties to return to normal. - The pace of short sales and foreclosures coming on the market has slowed considerably. In 2010, over 60% of sales were distressed properties but in November we only saw 482 foreclosures and 448 bank-owned sales. Resales and New Homes are the larger mix of sales.
- New Homes are making a slow but sure comeback. New home closings are up 55% . There are some wonderful new home communities coming online with the latest innovations in smart building that may be great options for buyers. Click here to view new home communities.
- The Case-Shiller Index reports that Metro Atlanta home values have increased 37% from the bottom of March 2012. But values remain down 16% from the peak of July 2007. Click here for the latest report.
- The trend for mortgage rates is higher. The Mortgage Bankers Association and Freddie Mac predict 30-year mortgage rates to be over 5% in 2014. This could significantly reduce buying power for those that wait.
- First time buyers and baby boomers remain the strongest market segments. Move-up buyers are showing some signs of improved activity but remain well below historical levels.
This is an unprecedented opportunity to buy the home of your dreams while prices and financing are historically low. But these conditions will not last as the real estate market continues to recover.
Happy New Year!
As we all get ready to celebrate the New Year, there are many predictions about what is likely to happen in 2014. Here are our top 10 predictions for the local real estate market:
Number 10: New Homes will continue to grow and become an increasing mix of closed transactions. We estimate that New Homes will be 25% of all sales in 2014.
Number 9: Overall inventory will grow to more historically normal levels by spring.
Number 8: Short sales and foreclosures will slow and return to historically normal levels.
Number 7: Baby boomers and First Time Buyers will be the largest buying segments for the Greater Metro Atlanta area.
Number 6: Mortgage rates will continue to rise to over 5% - which remains historically low. The average mortgage rate in the last 50 years was 8%.
Number 5: Home values will rise faster in areas with great schools and more desirable lifestyles.
Number 4: Apartment buildings will be a bubble with over-building leading to drop in rental rates. Single family rentals in desirable areas will remain strong.
Number 3: Most large investors will exit the Metro Atlanta market.
Number 2: Pent-up demand and fear of rising mortgage rates will bring more buyers into the market. Overall transactions will be 10-15 higher than 2013.
Number 1: Berkshire Hathaway HomeServices clients achieve the best results!
Number 9: Overall inventory will grow to more historically normal levels by spring.
Number 8: Short sales and foreclosures will slow and return to historically normal levels.
Number 7: Baby boomers and First Time Buyers will be the largest buying segments for the Greater Metro Atlanta area.
Number 6: Mortgage rates will continue to rise to over 5% - which remains historically low. The average mortgage rate in the last 50 years was 8%.
Number 5: Home values will rise faster in areas with great schools and more desirable lifestyles.
Number 4: Apartment buildings will be a bubble with over-building leading to drop in rental rates. Single family rentals in desirable areas will remain strong.
Number 3: Most large investors will exit the Metro Atlanta market.
Number 2: Pent-up demand and fear of rising mortgage rates will bring more buyers into the market. Overall transactions will be 10-15 higher than 2013.
Number 1: Berkshire Hathaway HomeServices clients achieve the best results!
Happy New Year! If You Know Someone Who Can Benefit From This Information Or Our Real Estate Expertise, We Would Love To Help Them.
Lake Sidney Lanier Homes is the most comprehensive online source for information on Lake Lanier homes for sale and Lake Lanier area real estate. View the latest Lake Lanier home listings, foreclosures, lots, land, sales trends and real estate topics on Lake Lanier. Arthur Prescott is an Accredited Buyer's Representative and Certified Residential Specialist with over a decade of Lake Lanier real estate experience. If you would like to schedule a free buyer or seller consultation, please feel free to contact us directly at 678-513-2014 or email us at APrescott@PrudentialGeorgia.com.
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